Major stock indexes got worked on Monday. They fell by more than 2 percent... the Dow Jones industrial average plunged 201 points, after the World Bank estimated the global economy will shrink 2.9 percent in 2009. It previously predicted a 1.7 percent contraction. How can you be that off on your previous prediction. I've been saying this is going to happen the whole time. Take a look at my Twitter from 32 days ago! I had to take a break until the correction finally came because the market was going up for no reason.
People are blogging, writing, and talking about how this has eroded hopes that the economy was starting to emerge from recession... there was never any sign of recovery. It was all smoke and mirrors during earnings season in the first quarter. People were just sick of negative news, so they started to buy and pushed the market up without the performance to back it. Things weren't improving... they were going from absolutely terrible to pretty damn bad.
The DOW, S&P 500 and NASDAQ were all down big on Monday. Investors took profits and finally realized that the banks are still in trouble. Citi fell almost 20 percent... is it really worth 20 percent less than it was Friday? What happened over the weekend?
Is the worst over? Doesn't look like it to me... Check out the full story here.
Greed is good? Didn't think so.
RSS Feed